China Telecom cuts CDMA handset subsidies

www.WirelessFederation.com/news: China Telecom, according to various sources, has made cuts to its CDMA handset subsidies. Li Wang, Eexecutive Vvice President of handset manufacturer Yulong (the owner of the Coolpad brand), confirmed: “China Telecom started reducing subsidies in certain provinces and municipalities in April.” Chinese smartphone manufacturer Qigi Future Technology VP Rao Xiaobo said “subsidies in some areas will be reduced by nearly half, as well as in areas that only subsidize low-end CDMA handsets of RMB 400 or less.”
The cut has affected CDMA mobile handset manufacturers who are dependent on these subsidies. Rao Xiaobo said “in nearly two months, more than a few CDMA manufacturers have had their sales volume drop by over 50%.”
The orders for few CDMA manufacturers have come to a halt.